Arizona Corp. acquired the business Data Systems for $305,000 cash and assumed all liabilities at the date of purchase. Data’s books showed tangible assets of $310,000, liabilities of $16,000, and stockholders’ equity of $294,000. An appraiser assessed the fair market value of the tangible assets at $295,000 at the date of acquisition.

Required:
a. Compute the amount of goodwill acquired.
b. Record the acquisition in a financial statements model.

Answers

Answer 1

Answer:

a. $26,000

b. the acquisition in a financial statements model

Non - Current Assets

Goodwill                 $26,000

Tangible Assets   $295,000

Total                      $321,000

Current Liabilities

Liabilities                $16,000

Total                      $321,000

Explanation:

Goodwill is the excess of the Consideration / Purchase Price over the Assets and Liabilities acquired.

Assets and Liabilities are Acquired at their Acquisition date Fair Values not Book Values.

Goodwill Calculation :

Consideration                  $305,000

Less Assets Acquired:

Tangible Assets             ($295,000)

Add Liabilities Acquired:

Liabilities                             $16,000

Goodwill                             $26,000


Related Questions


Joe is a manager. He recently purchased a new stock that is permissible and requires reporting.
What action should he take upon settlement of the purchase?

Answers

Answer:

The action that should be taken upon settlement of the purchase will be as follows: When the material enters the premises they require to be checked if it is according to the stock ordered. The delivery challan requires to be signed and given back to the seller of the goods.

The action should he take upon settlement of the purchase is Material must be verified upon arrival to the building to ensure that it matches the stock order.

What is a  manager?

A manager refers to a person who is responsible head of any project and helps in arranging the resources, checking the progress, and timely completion of it in order to achieve the vision and goal of the organization.

It is necessary to verify that the material is in agreement with the inventory order as it enters the structure. It is necessary to sign the shipment challan and return it to the product vendor.

There must be entries made in the inventory book when the material comes onto the property. In order to provide evidence, the journal entry must be recorded in the books of accounts.

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Which answer best illustrates what trade-offs are?

Which answer best illustrates what trade-offs are?

Answers

Maria chose to do homework. Her grade will improve

Question 6
(6 Marks)
Entity Z is trying to obtain a cost estimate for the costs of repairs. The following monthly repair costs
have been recorded for the past six months.
Plack Company is a manufacturing company that makes and sells a single product. The following
information relates to the company's manufacturing operations in the next financial year.
->
Opening and closing stock:
Production:-
Sales:
Fixed production overheads:
Fixed sales overheads:
Nil
18,000 units-unit manufactured 3000
15,000 units Units sold,
Closing
Inver
R72,000
Using absorption costing, the company has calculated that the budgeted profit for the year will be
R43,000.
>
Marginal Absorption
Required:
What would be the budgeted profit if marginal costing is used, instead of absorption costing?

Answers

The budgeted profit using marginal costing would be -R12,000.

How to calculate the cost

Using the information provided:

Opening stock = 0

Production = 18,000 units

Closing stock = 0

Fixed production overheads = R72,000

Total variable manufacturing costs = 0 + 18,000 - 0 - R72,000 = -54,000 (negative value due to fixed production overheads)

Total variable production cost per unit = -54,000 / 18,000 = -3 (negative value due to fixed production overheads)

Budgeted profit using marginal costing = (Sales - Total variable production cost per unit * Units sold) - Fixed sales overheads

Given:

Sales = 15,000 units

Fixed sales overheads = R72,000

Total variable production cost per unit = -3

Budgeted profit using marginal costing = (15,000 - (-3) * 15,000) - 72,000

= (15,000 + 45,000) - 72,000

= 60,000 - 72,000

= -12,000

Therefore, the budgeted profit using marginal costing would be -R12,000.

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What is the best source of information to use when purchasing a new car?
O Social media posts
O Car salesman on the lot
O Advertisement in a car magazine
O Unpaid reviews on reputable car sites

Answers

unpaid reviews on reputable car sites.

social media spreads lies, car salesman might lie about the car in order to make a sale, and an ad will do the same.

Option D. Unpaid reviews on reputable car sites

What sources of information do you have about cars?

Awards and rankings. There are many awards and many websites publish rankings of vehicles in different categories.

NHTSA or IIHS. These two organizations evaluate the safety of new cars.

Government website.

Understanding how a car works can help you drive more safely, reduce the risk of accidents, and extend the life of your car. For example, if you know how brakes wear over time, you can identify signs of wear early and replace them before increasing the risk of brake failure.

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The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in period 2, assuming Period 1 is the base year. (Round to 1 decimal place.)

Answers

Since Period 2 is the base year, so, index number for Period 2 will be 100 for the given information in Expenditure table.

for period 1 ,

Total Expenditure = $3,100

Index Number = 3100/3350×100

                        =92.537

for period 2,

Total Expenditure = $3,350

Index Number = 3350/3350×100

                        = 100

for period 3,

Total Expenditure = $3,400

Index Number = 3400/3350×100

                        = 101.492

for period 4,

Total Expenditure = $3,500

Index Number = 3500/3350×100

                        = 104.47

Index numbers are statistical measures that express changes in the value of a variable or a group of variables over time. They are used to compare the value of a particular variable at different points in time or across different regions or groups. Index numbers are useful in economics and other fields where there is a need to track changes in the value of a variable over time or across different units of observation. Common examples of index numbers include price indices, inflation indices, and stock market indices.

the complete question is:

The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in period 2, assuming Period 1 is the base year. (Round to 1 decimal place.)

                      Total Expenditure        Index Number

Period 1            $3,100

Period 2            $3,350

Period 3            $3,400

Period 4             $3,500

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Which of the following statements includes a line described as net income? (Select all that apply.)



Adjusted trial balance

Balance sheet

Income statement

Statement of stockholders’ equity

Answers

It should be noted that the statements which includes a line described as net income is income statement .

What is an income statement ?

An income statement  can be regarded as the financial statement which display company's income and expenditures.

This statement can display how the company is performing, whether it's making profit or loss for a given period.

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Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.A. strategic positioningB.domestic rivalryC. cost-leadershipD. economy of scale

Answers

Michael Porter defined strategic positioning as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company. Therefore the correct option is option A.

This concept emphasizes the ability of a company to position itself in the marketplace by aligning its strengths with the needs of its customers. The goal is to achieve sustainable competitive advantage by preserving what is distinct about a company.

A sustainable competitive advantage is a long-term competitive advantage that is difficult to replicate or overcome. Sustainable competitive advantages can be achieved through strategic positioning, economies of scale, cost leadership, or differentiation.

Strategic positioning is one of the most important tools in business strategy. This concept is based on the idea that a company must identify its unique strengths and align them with the needs of its customers.

By doing so, a company can position itself in the marketplace and achieve sustainable competitive advantage by preserving what is distinct about the company. Therefore the correct option is option A.

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Use the information in the table below to answer the following two questions.

Items Billions of $
Savings deposits 8000
Money market mutual funds 700
M2 13700
Checking deposits 1750
Small time deposits 750

How much is M1?
$
billion

Part 2 (1 point)See Hint
Now, calculate the amount of currency in billions of dollars in the economy from the given information (assume no traveler's checks).
$
billion

Answers

M1 includes checking deposits and savings deposits, but not money market mutual funds or small time deposits. The economy now has $3950 billion in currency.

How to calculate M1 value?

Therefore, M1 = $8000 + $1750 = $9750 billion.

To calculate the amount of currency in the economy, we need to subtract the non-currency components of M1 (checking deposits and savings deposits) from M2.

Therefore, currency = M2 - checking deposits - savings deposits

                                  = $13700 billion - $1750 billion - $8000 billion

                                  = $3950 billion.

So, the amount of currency in the economy is $3950 billion.

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Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable. Based on the preceding information, what amount of total assets did Beta report in its balance sheet immediately after the acquisition?

A. $500,000

B. $650,000

C. $750,000

D. $900,00

Answers

Answer:

The amount of total assets did Beta report in its balance sheet immediately after the acquisition is $650,000. The right answer is B

Explanation:

In order to calculate the amount of total assets did Beta report in its balance sheet immediately after the acquisition we would have to make the following calculation:

amount of total assets did Beta report in its balance sheet=Total assets reported by beta+Fair value of the investment

According to the given data:

Total assets reported by beta=$500,000

Fair value of the investment=$150,000

Therefore, amount of total assets did Beta report in its balance sheet=$500,000+$150,000

amount of total assets did Beta report in its balance sheet=$650,000

The amount of total assets did Beta report in its balance sheet immediately after the acquisition is $650,000

t 3 Lab Learning Activity
K
Marcus Richardson
HW Score: 0%, 0 of 4 points
O Points: 0 of 1
11/03/22 7:32 PM
Question 1, P4-4 (similar to)
(Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,505,600 in current assets and $864,000 in current liabilities. The company's managers want to
increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.1

Answers

$6,28,363  the firm increase its inventory without its current ratio falling below 2.1    

Current ratio = Current asset / current liability

Increasing inventory would increase the current asset.

We assume the additional inventory = L

So new current asset  = L + $2,505,600

New current liability   = L + $864,000

So,  L + $2,505,600÷ L + $864,000 = 2.1

By solving L we get, L= $6,28,363

In other words, assets are items that provide a financial benefit to a company, such as inventory, buildings, equipment, and cash. They aid a company's ability to manufacture goods or provide services both now and in the future. A company's liabilities are its obligations—either money owed or services not yet performed.

Liabilities are the debts owed by a company to third-party creditors. Accounts payable may include notes payable and bank debt. Businesses take on debt in order to expand faster. A company's stability is determined by the balance of its debts and assets

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Today's public relations departments: focus more on advertising and less on publicity. are more actively listening to customers and helping to solve their problems. avoid relationships with the media and government officials. are downsizing as firms emphasize personal selling to promote their products.

Answers

The correct answer is B. Are more actively listening to customers and helping to solve their problems.

Explanation:

The purpose of public relations departments is to connect customers with the company or brand by advertising products or services and establish a positive relationship. In the last years, public relations departments had focused on the relationship with customers especially by considering customers' opinions, perspectives, and experiences and helping them to solve any problem. This is because positive customer experiences have become the main way for companies to grow and advertise services or products, and therefore, it is essential to hear customers and help them. Thus, today's public relations departments listen to customers and solve their problems.

In today world, the public relations departments are more actively listening to customers and helping to solve their problems.

The main purpose of the public relations departments is to connect customers with the company or brand through advertising of its products or services and establishment of positive relationship.

Today, the public relations departments focused mainly on the relationship with customers on their opinions, perspectives, experiences and helping them to solve any problem that arise

Therefore, the correct answer is B because lately, the department are actively listening to customers and helping to solve their problems.

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What is an alternative plan?
A) Deadline
B) Plan
C) Inventory
D) Contingency Plan

Answers

Explanation

alternative plan means a plan of reorganization (other than the Plan) that does not include Investor and/or funds managed by Investor as the sole new money underwriter.

ANSWER

PLAN

MARK AS BRAINLIEST PLEASE

Do you think it’s better to take out a loan to fund a business or seek out an investor?

Answers

Answer:is better to take out a loan

Explanation:

10. What is an advantage of using a credit card?
1 point
It will not affect your credit score or credit history
Since it is tied directly to your checking account, it prevents you from spending money
you do not have
If you need to carry a balance, the interest rates are generally quite low (less than 5%)
If you pay off your balances every month in full, it's like getting a short-term interest-
free lom
11. Each of the following financial products will help you build a credit
history EXCEPT

Answers

10. The correct advantage of using a credit card is: if you pay off your balances every month in full, it's like getting a short-term interest-free loan.

11. All the mentioned financial products can help build credit history when used responsibly, so none of them should be excluded from the list.

10. Using a credit card responsibly and paying off the balance in full each month offers the advantage of essentially accessing interest-free credit for a short period.

When you make purchases with a credit card and pay the full amount by the due date, you avoid paying any interest charges on those purchases. This can be particularly beneficial if you have a large purchase or unexpected expense that you need to make and would prefer to pay off gradually over a few weeks or months without incurring interest.

11. As for the financial products that help build credit history, all of the following options can contribute to establishing a credit history:

Credit cards: Responsible use, such as making timely payments and keeping credit utilization low, can help build a positive credit history.

Loans (e.g., student loans, auto loans, mortgages): Consistently making payments on time and in full can demonstrate your ability to manage debt responsibly.

Lines of credit: Similar to credit cards, properly managing lines of credit and making timely payments can contribute to a positive credit history.

Secured credit cards: These cards require a security deposit but can still help build credit history if used responsibly.

Therefore, all the mentioned financial products can help build credit history when used responsibly, so none of them should be excluded from the list.

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Sheldon, a physicist, has developed a breakthrough formula and he wants to protect it. What type of intellectual property law covers confidential information, such as a physics formula, that is in the process of being licensed?

A. Trade secret

B. Copyright

C. Trademark

D. Patent

Answers

The type of intellectual property law that covers confidential information, such as a physical formula, that is in the licensing process is A. Trade Secret.

What is trade secret?

Corresponds to a type of licensing whose objective is the protection of intellectual property whose information is confidential and for use only by the creator himself, who also has the right to license it and receive royalties for it.

Therefore, trade secret is related to a property, as an innovative formula, which may contain confidential and valuable information, whose owner has legal use, licensing and disclosure rights.

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Answer the following questions on the basis of the monopolist's situation is illustrated in the following graph.

a. At what output rate and price does the monopolist operate?
b. In the equilibrium, approximately what is the firm's total cost and total revenue?
c. What is the firm's economic profit or loss in equilibrium?

Answer the following questions on the basis of the monopolist's situation is illustrated in the following

Answers

The following answers are based on a monopoly economy.

The output rate and the price at which the monopolist operates based on the graph is 100 quantities at $10.In the market equilibrium, the firm's total cost and total revenues are $750 and $1000 respectively. The firm's economic profit in the equilibrium is $250.

What is a monopoly?

A monopoly, as defined by Irving Fisher, is a market with "no competition," resulting in a scenario in which a certain individual or organization is the exclusive supplier of a given product.

To arrive at answer a, we need to recall that the equilibrium of a monopolist is when the Marginal Cost equals the Marginal Revenue and the Marginal Cost Curve (MC) cuts the Marginal Revenue Curve (MR ) from below.

At this point, the equilibrium output is 100, and the equilibrium price is $ 10 for every unit of production.

For the answer is b, given that the firm is producing 100 units of goods at an average total cost of $7.5 (derived from the point that aligns with MR = MC), therefore,

Total Cost   = Equilibrium Output * ATC (Average Total Cost)

= 7.5 * 100

= $750

To arrive at answer c,
Recall that Economic profit is the difference between the money collected from the sale of a product and the expenses of all inputs utilized, as well as any opportunity costs, is the economic profit or loss.

Hence, Economic Profit = Total Revenue (TR) Less Total Cost (TC)

= $1000 - $ 750

= $250

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What motivates people to buy certain products?

Answers

advertisement, reviews
It might motivate someone to buy a product because they might either want it, or need it.

Résumés should be prepared using the following guidelines:
12-point font
uniformly designed
white space to improve readability printed on quality paper​

Answers

Answer:

I personally selected all of them, not sure if it's right or not because my teacher didn't tell me for some reason, but it's worth a try.

Explanation:

Explain how introducing an agile method will improve the outcomes of software development?

Answers

Answer:

In simple words, Agile architecture, in fact, speeds up the distribution of original market value and ensures that quality is maximized during the implementation system by a process of constant preparation and feedback.

Projects are finished in shorter iterations, rendering them more achievable, thanks to the incremental design of the agile process. It also makes it possible to roll out goods efficiently and make adjustments at any time throughout the phase

Which of the following best describes how a condominium is owned?
O A. A group of partners own the building and rent each apartment to
the residents.
O B. The residents of a condominium are shareholders in a corporation
that owns the building.
C. A condominium is an apartment that is owned by the resident
rather than a landlord.
O D. Condominiums are apartments owned by a landlord who charges
rent to the residents.

Answers

Answer: A condominium is an apartment that is owned by the resident rather than a landlord.

so it would be O. A

7. Which of the following is not one of the advantages of a table, chart, or graph?
A. They can be divided into many small segments.
B. They can display a lot of information in a small space.
C. They allow you to compare data.
D. They show trends in data.

Answers

Answer:

A

Explanation:

supply a reason for a decline in the balance of the current account​

Answers

^^^^ what they said!

kindly watch this video

Answers

What is the video link ?

Q1. A manufacturing firm has discontinued production of a certain unprofitable product
line. This created considerable excess production capacity. Management is considering to
devote this excess capacity to one or more of three product 1,2 and 3. The available capacity
on the machines which might limit output are given below:
Machine type Available time
(in machine hours per week)
Milling
machine
250
Lathe 150
Grinder 50
The number of machine hours required for each units of the respective product is given
below;
Machine type Productivity (in machine hours/unit)
Product 1 Product 2 Product 3
Milling 8 2 3
Lathe 4 3 0
Grinder 2 0 1
The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of
each product the firm should produce in order to maximise profit ? Solve the problem by
simplex method.

Answers

The simplex method is a linear programming technique used to find the maximum value of a linear objective function subject to constraints represented by linear equations or inequalities.

How do we use this method?

Here's how you can solve this problem using the simplex method:

Formulate the problem as a linear program:

The objective is to maximize the total profit, which is given by 20x1 + 6x2 + 8x3, where x1, x2, and x3 are the number of units of products 1, 2, and 3, respectively. The constraints are the available machine time, which are:

8x1 + 4x2 + 2x3 <= 250 (milling machine)

3x1 + 3x2 <= 150 (lathe)

x3 <= 50 (grinder)

Create a simplex tableau:

The simplex tableau is a matrix used to keep track of the variables and the coefficients of the objective function and the constraints. The first row of the tableau is the objective function, the rest of the rows are the constraints. The last column is called the "result" column and contains the values of the variables and the objective function.

Choose a basic variable:

In the first iteration, we will choose x1 as the basic variable, since it is the only non-negative variable in the objective function. We will write x1 in terms of x2 and x3 using the first constraint:

x1 = (250 - 4x2 - 2x3)/8

Update the simplex tableau:

Substitute x1 in the objective function and in the rest of the constraints:

20 * (250 - 4x2 - 2x3)/8 + 6x2 + 8x3

3x2 <= 150

x3 <= 50

Check for optimality:

Check if all the coefficients in the objective function are non-negative. If so, the current solution is optimal and the problem is solved. If not, choose the next basic variable and repeat steps 3 and 4.

Repeat steps 3 to 5 until optimality is reached:

In the second iteration, we will choose x2 as the basic variable. Substitute x2 in the objective function and in the rest of the constraints, and check for optimality. Repeat this process until the coefficients in the objective function are non-negative, indicating that the solution is optimal.

The final solution will give the number of units of each product that the firm should produce in order to maximize profit.

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City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,700. In addition, City paid sales tax and title fees of $570 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,360. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the auto was sold on January 1, Year 3, for $19,672. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.)

Answers

Answer: See explanation

Explanation:

Note that the depreciable cost was calculated as $17910 and the depreciation per year was:

= $17910/5

= $3582

Also, the book value of the taxi was calculated as:

= Cost - Accumulated depreciation

= $24270 - ($3582 × 2)

= $24270 - $7164

= $17106

Check the attachment for further explanation.

City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,700. In addition,

Nu-Concepts, Inc., a southeastern advertising agency, is considering the purchase of new computer equipment and software to enhance its graphics capabilities. Management has been considering several alternative systems, and a local vendor has submitted a quote to thc company of $15,000 for the equipment plus $16,800 for software. Assume that the equipment can be depreciated for tax purposes over three years as follows: year 1, $5,000; year 2, $5,000; year 3, $5,000. The software can be written off immediately for tax purposes. The company expects to use the new machine for four years and to use straight-line depreciation for financial reporting purposes. The market for used computer systems is such that Nu-Concepts could sell the equipment for $2,000 at the end of four years. The software would have no salvage value at that time Nu-Concepts management believes that the introduction of the computer system will enable the company to dispose of its existing equipment, which is fully depreciated for tax purposes. It can be sold for an estimated $200 but would have no salvage value in four years. If Nu-Concepts does not buy the new equipment, it would continue to use the old graphics system for four more years. Management believes that it will realize improvements in operations and benefits from the computer system worth per year before taxes. Nu-Concepts uses a 10 percent discount rate for this investment and has a marginal income tax rate of 40 percent after considering both state and federal taxes. a. Prepare a schedule showing the relevant cash flows for the project. b. Indicate whether the project has a positive or negative net present value.

Answers

a. Schedule of Relevant Cash Flows:

| Year | Cash Inflows | Cash Outflows | Depreciation | Tax Shield | Net Cash Flow |

|------|-------------|--------------|-------------|------------|---------------|

| 0 | - | $15,000 | - | $6,000 | -$9,000 |

| 1 | $5,000 | $5,600 | $5,000 | $2,000 | -$2,600 |

| 2 | $5,000 | $5,600 | $5,000 | $2,000 | -$2,600 |

| 3 | $5,000 | $5,600 | $5,000 | $2,000 | -$2,600 |

| 4 | $2,000 | $5,600 | $- | $- | -$3,600 |

| Total| $17,000 | $37,000 | $20,000 | $12,000 | -$8,000 |

b. Calculation of Net Present Value:

NPV = -Initial Investment + Present Value of Cash Flows

NPV = -$9,000 + [$2,600/(1+0.1)^1] + [$2,600/(1+0.1)^2] + [$2,600/(1+0.1)^3] + [$3,600/(1+0.1)^4]

NPV = -$9,000 + $2,363 + $1,933 + $1,590 + $2,106

NPV = $992

Since the NPV is positive, the project has a positive net present value and would be considered a good investment for Nu-Concepts, Inc.

On July 1, 20X3, Roxy Co. obtained fire insurance for a three-year period at an annual premium of $72,000 payable on July 1 of each year. The first premium payment was made July 1, 20X3. On October 1, 20X3, Roxy paid $24,000 for real estate taxes to cover the period ending September 30, 20X4. This prepayment was made to obtain a discount. In its December 31, 20X3, Balance Sheet, Roxy should report prepaid expenses of:

Answers

Answer:

$54,000

Explanation:

Calculation for What Roxy should report prepaid expenses In its December 31, 20X3, Balance Sheet,

Fire insurance premium (Unexpired) $36,000

($72,000*1/2)

Add Real estate tax prepayment (Unexpired) $18,000

($24,000*9/12)

December 31, 20X3 Prepaid expenses $54,000

($36,000+$18,000)

Therefore In its December 31, 20X3, Balance Sheet, Roxy should report prepaid expenses of:$54,000

5 eBook Preparing a consolidated income statement For the year ended December 31, 20Y2, the operating results of Paley Corporation and its wholly owned subsidiary, Sims Enterprises, are as follows: Paley Sims Corporation Enterprises Sales Cost of goods sold Gross profit Operating expenses Operating income Interest revenue Interest expense Net income Sales 3,200,000 (1,900,000) 1,300,000 (750,000) 550,000 20,000 Cost of goods sold Gross profit Operating expenses Operating income During 20Y2, Sims Enterprises sold and received payment of $80,000 for merchandise that was purchased by Paley Corporation. The merchandise sold to Paley cost Sims Enterprises $45,000. Paley Corporatio (nonaffiliated) company for $110,000. 570,000 a. Prepare a consolidated income statement for Paley Corporation and Subsidiary. Hint: Eliminate the effect of the intercompany sale. Paley Corporation and Subsidiary Consolidated Income Statement For the Year Ended December 31, 20Y2 Other revenue and expense: Interest revenue Interest expense Net income Print Item Check My Work 900,000 (550,000) 350,000 (125,000) 225,000 (15,000) 210,000 X All work saved. Email Instructor Sav​

Answers

The cost of goods sold ($1,900,000 + $45,000) is adjusted by the intercompany sale. the effect of the intercompany sale is eliminated in preparing the consolidated income statement.

Consolidated income statement is used to combine the financial statements of two or more parent company and their subsidiaries into a single financial statement. Therefore, the consolidated income statement for Paley Corporation and its wholly owned subsidiary, Sims Enterprises can be prepared as follows; Paley Corporation and Subsidiary Consolidated Income Statement For the Year Ended

December 31, 20Y2Sales $3,200,000Cost of goods sold ($1,900,000 + $45,000) 1,945,000 Gross profit $1,255,000

Operating expenses ($750,000 - $125,000) 625,000

Operating income $630,000Other revenue and expense:

Interest revenue $20,000Interest expense ($15,000 + $20,000) (35,000)Net income $615,000Note: The cost of goods sold ($1,900,000 + $45,000) is adjusted by the intercompany sale.

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Service levels are reported accurately is an example of which control

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Answer:

Service level measures the performance of a system. Certain goals are defined and the service level gives the percentage to which those goals should be achieved. Fill rate is different from service level.

Examples of service level:

Percentage of calls answered in a call center.

Percentage of customers waiting less than a given fixed time.

Percentage of customers that do not experience a stockout.

Percentage of all parts of an order being fulfilled completely

(Explanation) if one component part of an order is not filled the Service Level for that order is Zero, If all the component parts of an order are delivered except one is filled at 51%, the service level for that order is 51% (This system is often used in supply chain delivery to manufacturing), This is a very different from a simple order fill measurement which does not consider line items on the order.

Explanation:

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Which statement best describes the difference between a market and traditional economy

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Answer:  in a traditional economy, decisions are based on habit and custom

Explanation:

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